United States Department of Agriculture Selects Oracle Cloud for STRATUS Contract

Rhea-AI Summary

The United States Department of Agriculture (USDA) has selected Oracle Cloud for its STRATUS program, enabling federal agencies to access Oracle's cloud infrastructure and applications. The program, managed through USDA's Digital Infrastructure Services Center (DISC), streamlines cloud infrastructure solutions while providing technical support and training.

Federal agencies can now procure Oracle Cloud services, including database, compute, storage, AI infrastructure, and applications through STRATUS. The program offers significant cost advantages, with Oracle Cloud Infrastructure (OCI) providing up to 50% savings on compute, 70% on storage, and 80% on networking compared to other cloud providers.

USDA currently utilizes multiple Oracle Cloud solutions, including OCI, Oracle Exadata, finance, and HR applications for critical operations like NFC Insight, EmpowHR, and APHIS Plant Protection and Quarantine.

Positive

• Secured major government contract with USDA for cloud services
• OCI offers 50% savings on compute costs vs competitors
• 70% lower storage costs and 80% lower networking costs compared to other providers
• Expansion potential to serve both civilian and defense agencies through STRATUS

Negative

• None.

Insights

Government Technology Procurement Expert

The USDA's selection of Oracle for the STRATUS program represents a strategic expansion of Oracle's federal footprint. STRATUS isn't merely a single-agency contract but a procurement vehicle that enables multiple federal agencies to access Oracle's cloud services through the USDA's Digital Infrastructure Services Center.

This arrangement positions Oracle advantageously within the federal procurement ecosystem. Government contracts typically involve lengthy approval processes, but being pre-approved under STRATUS significantly reduces procurement friction for agencies considering Oracle's solutions. This creates an efficient pathway for both USDA and non-USDA agencies to adopt Oracle's cloud offerings.

The article specifically mentions that USDA already leverages Oracle solutions for critical operations like NFC Insight, EmpowHR, and APHIS Plant Protection and Quarantine. This existing relationship likely facilitated Oracle's inclusion in STRATUS and demonstrates proven performance within federal environments.

Federal agencies increasingly favor multi-cloud approaches to avoid vendor lock-in while optimizing performance and costs. Oracle's inclusion in STRATUS aligns with this trend, as noted by the explicit mention of "multicloud solutions" enabling "greater agency efficiency." The highlighted cost advantages of 50% less for compute, 70% less for storage, and 80% less for networking compared to competitors will resonate strongly with budget-conscious federal IT decision-makers operating under strict fiscal constraints.

Cloud Computing Industry Analyst

Oracle's inclusion in the USDA STRATUS program demonstrates meaningful progress in the competitive cloud infrastructure market where Oracle has historically trailed market leaders. The contract specifically encompasses Oracle's comprehensive cloud portfolio - infrastructure, database services, compute, storage, AI capabilities, and applications.

The deal's significance extends beyond immediate revenue. By embedding Oracle Cloud Infrastructure (OCI) within the STRATUS program, Oracle gains improved visibility and accessibility to federal agencies that might otherwise default to larger cloud providers. The explicit cost comparisons cited - 50% less for compute, 70% less for storage, and 80% less for networking - represent Oracle's aggressive pricing strategy to gain market share against entrenched competitors.

Oracle's positioning within a federal multi-cloud initiative aligns with their broader market strategy. Rather than attempting to displace competitors entirely, Oracle is strategically inserting their solutions alongside existing cloud deployments, targeting specific workloads where they deliver superior performance-to-cost ratios.

The mention of AI infrastructure and services within the contract scope is particularly relevant as agencies explore generative AI capabilities. Oracle has invested significantly in optimizing their cloud infrastructure for AI workloads, and this contract creates opportunities to deploy these capabilities across federal agencies.

This program enables Oracle to steadily expand their government cloud footprint with potential for recurring revenue growth as agencies adopt more services through the STRATUS vehicle.

STRATUS program enables federal agencies to implement Oracle's high-performance cloud infrastructure and applications for greater efficiency

WASHINGTON, April 15, 2025 /PRNewswire/ -- Oracle Federal Forum -- The United States Department of Agriculture (USDA) has chosen Oracle Cloud as part of its STRATUS program. Managed through the USDA's Digital Infrastructure Services Center (DISC), STRATUS streamlines access to cloud infrastructure solutions for federal agencies, while also providing technical support services and training. With Oracle Cloud part of STRATUS, federal agencies can procure Oracle Cloud services, including database, compute, storage, AI infrastructure and AI services, and applications to help modernize their operations, increase performance and security, and reduce costs.

"STRATUS provides a range of services from cloud brokering services to managed solutions," said Dave Peters, ACIO, USDA. USDA currently leverages multiple Oracle Cloud solutions, including Oracle Cloud Infrastructure (OCI), Oracle Exadata, finance, and HR applications to enhance critical operations NFC Insight, EmpowHR, and APHIS Plant Protection and Quarantine.

Through STRATUS, both USDA and non-USDA agencies can also now use OCI services in Oracle US Government Cloud and leverage the scalability, price, and performance benefits of OCI to help reduce costs and the complexity of managing multiple cloud vendor deployments. For example, on average, OCI costs 50 percent less for compute, 70 percent less for storage, and 80 percent less for networking than other cloud providers.

"USDA STRATUS will enable federal agencies to more quickly move toward multicloud solutions, creating greater agency efficiency," said Kim Lynch, executive vice president, Government, Defense & Intelligence, Oracle. "With Oracle's inclusion in the STRATUS program, civilian and defense agencies can now accelerate their cloud migration leveraging Oracle's applications and the superior AI capabilities, scalability, and performance of OCI."

About USDA
The USDA provides economic opportunity through innovation, helping rural America to thrive; to promote agriculture production that better nourishes Americans while also helping feed others throughout the world; and to preserve our Nation's natural resources through conservation, restored forests, improved watersheds, and healthy private working lands. Please visit www.usda.gov for more information.

About Oracle
Oracle offers Intergraded suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com

Trademarks
Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

 

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SOURCE Oracle

FAQ

What cost savings does Oracle Cloud Infrastructure (ORCL) offer through the USDA STRATUS program?

OCI offers 50% savings on compute, 70% on storage, and 80% on networking compared to other cloud providers.

Which Oracle (ORCL) cloud services are included in the USDA STRATUS contract?

The contract includes Oracle Cloud Infrastructure, database, compute, storage, AI infrastructure, AI services, and applications.

How is USDA currently using Oracle's (ORCL) cloud solutions?

USDA uses OCI, Oracle Exadata, finance, and HR applications for operations like NFC Insight, EmpowHR, and APHIS Plant Protection and Quarantine.

What is the significance of Oracle's (ORCL) STRATUS program for federal agencies?

STRATUS enables federal agencies to implement Oracle's cloud infrastructure with streamlined access, technical support, and training while reducing costs.